U.S. Dollar Rises As Sentiment Fades On Fiscal Cliff Concerns

The U.S. dollar advanced against most major opponents on Monday as investor sentiment was weighed by the stalemate in U.S. budget negotiations.

The U.S. Senate will reconvene later in the day in its final attempt to reach a deal before the year-end deadline. Talks over weekend showed little progress as law makers are divided on income threshold for higher tax rates and taxation of large inherited estates, among other issues.

If no agreement is reached, approximately $600 billion in automatic tax increases and government spending cuts will take effect from January 1 that could push the world's biggest economy into recession.

The greenback is trading at 0.9164 against the franc, adding 0.34 percent from last week's close of 0.9133. The next upside target level for the greenback-franc pair is seen at 0.92.

Against the European single currency, the greenback advanced 0.33 percent to 1.3178, compared to Friday's New York session close of 1.3222. The greenback is likely to seek next resistance level at 1.31.

The greenback is trading at 86.11 against the yen, reversing from early Asian session's 4-day low of 85.76. If the greenback extends gain, it may break 86.5 level.

There are no major economic reports due in the European and New York sessions.